Debenhams sales drop while chief exec raises concerns over consumer spending

Debenhams has reported a fall in like-for-like group sales of one per cent for the 15 weeks to 14 June. However, the multi-channel retailer enjoyed strong growth in online and international business.

The company attributed the slight fall in part to the changing date of its summer sale to 26 June. Instead of slashing prices Debenhams has focused on the strength of its product proposition.

Michael Sharp, chief executive of Debenhams, also took the opportunity to raise concerns about consumer spending: "Looking forward, whilst it is clear that consumers are aware of improvements in economic indicators, they are not yet seeing a significant improvement in their disposable income.  Our outlook for the full year remains unchanged."

In April, the company announced a fall in half-year pre-tax profit of 24.5 per cent, to £85.2m.

The drop was in line with expectations, the high street store stressed, but showed the still challenging and competitive environment, particularly in the UK, with which it’s having to cope.